STORY HIGHLIGHTS

Prime Minister Narendra Modi today assured Bangladesh of an "early solution" to the emotive Teesta water sharing issue, a pact on which has remained elusive for nearly seven years.

The two sides inked nearly two dozen pacts in key areas of defence and civil nuclear cooperation after "productive" talks between Modi and Bangladesh Prime Minister Sheikh Hasina here.

Modi held extensive discussions with Hasina on ways to strengthen ties between the two countries after which he announced a line of concessional credit of USD 4.5 billion for implementation of projects in Bangladesh.

Announcing an additional line of credit of USD 500 million to Bangladesh for military supplies, Modi said it will be driven by the requirement of that country.

However, the much-delayed pact on Teesta water sharing remained elusive for the two sides. Stressing that the deal was "important" for India-Bangladesh ties, Modi assured India's commitment to the issue.

He said an "early solution can and will be found" to the Teesta water sharing issue.

The Teesta deal was set to be signed during the then Prime Minister Manmohan Singh's visit to Bangladesh in September, 2011 but was postponed at the last minute due to objections by West Bengal Chief Minister Mamata Banerjee.

Teesta water is crucial for Bangladesh especially in the leanest period from December to March when the water flow often temporarily comes down to less than 1,000 cusecs from 5,000 cusecs.